POTW | Chanhassen
By David Arbit on Monday, April 25th, 2016
With the passing of Minnesota icon Prince last week, we felt inspired to showcase Chanhassen this week, where the late artist’s residential compound and performing area known as Paisley Park is located.
Typical home prices in Chanhassen are notably higher than those in the Twin Cities metro area. The median price in Chanhassen is $325,000 compared to $221,000 for the metro. By that metric, prices in the city are just under 50.0 percent higher than the metro.
But let’s go for a more apples-to-apples comparison. When it comes to single-family, previously owned, traditional, 3-bedroom homes between 2,000 and 2,500 square feet, that spread shrinks to just over 20.0 percent.
New home building is a key market segment in this area. When it comes to sales activity, there have been three major waves of new construction sales since the housing downturn. The first wave peaked in Spring 2012, the second in Fall 2013 and the third could be approaching its peak in Spring 2016.
Those construction waves have eased inventory bottlenecks in the area, but mostly for single-family properties, a segment which can almost be called “balanced” (look for 5-6 months to officially call a market “balanced”). But 4.4 months supply of single-family homes is better than just 2.2 months supply of multi-family properties.
In other words, demand for both segments has been strong, but supply measures have improved for single-family while the supply squeeze for townhouse-condo properties has only worsened over the last few years.
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